Which sectors will be beneficiaries of National Electricity Plan? Care Rating’s Sabyasachi Majumdar explains
Sabyasachi Majumdar, Senior Director, Care Ratings, says one of the beneficiaries of the new National Electricity Plan would be the transmission companies.There will be a lot of projects for them to take up. But apart from that, the beneficiaries will be the suppliers to the transmission network, which will basically be the equipment manufacturers, people who make the lines, conductors, cables, transformation equipment, switchyards, and switchgears, plus the EPC contractors who are going to string up all these lines and set up all these capacities. So, it will have a broad-based impact across the large segment of the electrical engineering industry.
Is the National Electricity Plan really a fresh announcement coming in or is this something that was budgeted for and talked about already and you guys were factoring it in the capex lined up for the coming years?
Sabyasachi Majumdar: The power demand has been fairly buoyant after the recovery from COVID and it has been growing at a high single digit. Basically, it can be considered a continuation of the current trend. Right now, peak demand is somewhere around 250 gigawatt and the government expects it to go up to about 458 gigawatt up to 2032, which basically represents CAGR of about 7% to 8% per annum, which is more or less in line with what we have been seeing in the past. So, it is pretty much based on that.
But obviously, the electricity plan, including the transmission capacities, which have to go into it, have to be updated from time to time. Broadly, it is
